Search found 1891 matches

by bigred77
Fri Nov 17, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: To buy or not to buy...house buying question (budget)
Replies: 11
Views: 874

Re: To buy or not to buy...house buying question (budget)

I would absolutely max out your 401k, 403b, and Backdoor Roth IRA space. Max all tax advantaged space. I don’t understand why anyone would recommend against that. Keep paying down your student loans at an accelerated pace. If you see a house in the price range you described (call it under 750k) then...
by bigred77
Thu Nov 16, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk for early retirement?
Replies: 21
Views: 2999

Re: Too much risk for early retirement?

You have enough money to retire on 100k per year in expenses.

You have ways to access those funds without penalty and flexibility to really optimize your lifelong tax burden.

You have no financial reason to not retire right now if you want to.
by bigred77
Thu Nov 16, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Been thinking about this post for a while...Mom's retirement
Replies: 13
Views: 1458

Re: Been thinking about this post for a while...Mom's retirement

I think a straight forward SPIA once she retires (if she can make to 70 that would be great!) would be an excellent idea here.

I second the thought to downsize the house as soon as possible. Make sure the new place is “age in place” friendly.
by bigred77
Thu Nov 16, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help for semi retired friend with 8 figure savings
Replies: 64
Views: 3977

Re: Help for semi retired friend with 8 figure savings

I would personally have: 25% each in US and INTL equity index funds. 40% in fixed income, mainly Muni's 10% in Real Estate and "alternatives" like VC and PE. My 10% would all be in REITs because if I wouldn't want the hassle of actively managing those other investments but to each their own. I would...
by bigred77
Wed Nov 15, 2017 11:34 pm
Forum: Investing - Theory, News & General
Topic: Car loans vs. Home loans - Are markets efficient?
Replies: 12
Views: 931

Re: Car loans vs. Home loans - Are markets efficient?

It’s term risk. You have to incentivize someone to loan you money at a fixed rate for 15 or 30 years, no matter how credit worthy you are or how good the collateral is.
by bigred77
Tue Nov 14, 2017 5:30 pm
Forum: Personal Consumer Issues
Topic: Did you want to set up a payment plan for that?
Replies: 19
Views: 2249

Re: Did you want to set up a payment plan for that?

I'm a little surprised at the replies here. Yes, Bogleheads, with their generally high incomes and generally high savings rates can just eat $200 - $1000 expenses in stride. Just write a check or swipe your credit card and pay the bill at the end of the month. A huge chunk of this country does not h...
by bigred77
Mon Nov 13, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: What's your weighted average expense ratio?
Replies: 65
Views: 3089

Re: What's your weighted average expense ratio?

Mine is about 12 basis points with a slice and dice approach, close to 50% of equities are international, and I factor in trading costs of ETFs within my 401k brokerage link.

I'm satisfied. I think one day I could get it under 10 basis points as the index fund price wars rage on.
by bigred77
Thu Nov 09, 2017 11:45 pm
Forum: Personal Consumer Issues
Topic: Best Approach for Purchasing Many Furnishings
Replies: 27
Views: 1664

Re: Best Approach for Purchasing Many Furnishings

My first post college apartment was a condo that I actually bought via short sale so I expected to spend a number of years there. All I had was “college” furniture so I took my first bonus and furnished the whole 800sqft for about $5k or so from a discount furniture store. I thought I was such the s...
by bigred77
Wed Nov 08, 2017 2:56 pm
Forum: Personal Consumer Issues
Topic: Cable switching thought exercise
Replies: 15
Views: 872

Re: Cable switching thought exercise

I doubt you need to play these games. At least I know you don't need to if your referring to Comcast. You call and ask to cancel your service after the promo period ends because of price. You insist on getting the deal their website shows for new subscribers. You deny them 2X when they come back wit...
by bigred77
Tue Nov 07, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: From 100% equity to 80/20. Overnight or over a year?
Replies: 23
Views: 1857

Re: From 100% equity to 80/20. Overnight or over a year?

I vote for overnight. You’ve made the decision, no reason to delay the execution.
by bigred77
Tue Nov 07, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: How old are you and how much do you save for retirement a year
Replies: 151
Views: 12566

Re: How old are you and how much do you save for retirement a year

Wife and I are both 32 and our household saves 42k per year into tax advantages accounts (including employer match).

We’re transitioning into a single income household in 2018 and hope to not have to decrease contributions but the budget is lookin skin tight :shock:
by bigred77
Tue Nov 07, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: BH Ideal net worth allocation
Replies: 22
Views: 2816

Re: BH Ideal net worth allocation

Really not uncommon for younger people to have substantial portions of their net worth in housing if they prioritized that earlier than others. Can also happen if you bought a house and immediately saw some significant appreciation. I don't know what "ideal" is but I would strive for some asset loca...
by bigred77
Fri Nov 03, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: Dividends better than buybacks in retirement accounts
Replies: 32
Views: 2306

Re: Dividends better than buybacks in retirement accounts

I have read on here that buybacks and dividends achieve the same goals in regards to total return, but is that really the case? Take Dell for example. Dell purchased its own shares at 40, 30, and 20 dollars per share. They then went private at $15 per share. All that buyback money went poof for inv...
by bigred77
Fri Nov 03, 2017 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans: Best to Pay Down or Wait for Forgiveness?
Replies: 33
Views: 2011

Re: Student Loans: Best to Pay Down or Wait for Forgiveness?

For me it is not just math. You incurred an obligation willingly, so I think you should pay it off. Especially with the assets you own and salary. I don't think this is fair. The law allows for this, just as it allows for tax loopholes and other things. Is forgiveness even possible after more than ...
by bigred77
Fri Nov 03, 2017 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: This is why I'm glad I started investing at 23
Replies: 27
Views: 4608

Re: This is why I'm glad I started investing at 23

I’m actually glad I started saving aggressively at 23 precisely so I can make my own run at climbing the corporate ladder. I’ve seen some ambitious people 10+ years my senior make aggressive career choices that backfire when someone else gets that promotion they were gunning for and suddenly they’re...
by bigred77
Fri Nov 03, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans: Best to Pay Down or Wait for Forgiveness?
Replies: 33
Views: 2011

Re: Student Loans: Best to Pay Down or Wait for Forgiveness?

I would go with option 4. Lower your interest expense. Come up with a plan to pay it off over 10 years or so. You don’t want to be worrying about potential tax law changes over the next 19 years or be stuck with student loan payments into your mid 50s. Can you allocate $2K a month to it (plus put 10...
by bigred77
Wed Nov 01, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: I'm fairly young but done with saving money
Replies: 75
Views: 9343

Re: I'm fairly young but done with saving money

$2M probably gives you a safe withdrawal rate of $70-80k/year. Is that enough, especially when you figure in inflation? Even at 2%/year, inflation will take a huge chunk out of what that $80k will pay for 20, 30, or 40 years from now. Assuming 2% inflation, $80k now will be worth $35k in today’s do...
by bigred77
Tue Oct 31, 2017 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Will we be house poor in Boston? Help us to set a budget limit
Replies: 36
Views: 2787

Re: Will we be house poor in Boston? Help us to set a budget limit

I think you are well served considering a 30 year mortgage based on the current interest rate spread between 15 and 30 year interest rate spreads. You are locking in a 30 year amortization schedule, not 30 years of guaranteed payment obligations. You are buying cashflow flexibility and longer term l...
by bigred77
Wed Oct 25, 2017 4:35 pm
Forum: Personal Consumer Issues
Topic: Air China out of Dulles-- your experience?
Replies: 5
Views: 445

Re: Air China out of Dulles-- your experience?

I've flown on a number of Air China flights from Houston to/from Beijing and I was very impressed with their service and comfort compared to any other coach experience. Their prices were obviously the best and I never had any safety concerns. Great value. I MUCH preferred Air China to ANA. Night and...
by bigred77
Wed Oct 25, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Should I Wait to Buy a Home?
Replies: 16
Views: 2506

Re: Should I Wait to Buy a Home?

I suspect that a lot of the high end market is less mortgaged than the entry level or middle market. Quite frankly I expect a lot of grumbling from a lot of parties with a vested interest in the mortgage interest tax deduction but ultimately a very muted market response even if it did come to pass....
by bigred77
Tue Oct 24, 2017 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Wait to Buy a Home?
Replies: 16
Views: 2506

Re: Should I Wait to Buy a Home?

They're talking about getting rid of the state income and property tax deductions. Maybe the mortgage interest deduction, too. Would this make you hesitate to by a home now? The higher-end market in our area has stalled. I'm wondering if people are waiting to see what happens with tax reform. Shoul...
by bigred77
Tue Oct 24, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Building very high net worth
Replies: 81
Views: 8245

Re: Building very high net worth

Honestly, if you are talking about high net worth, $12 million no longer qualifies because there are now over 2,000 billionaires. I would think it would take at least $100 million to be considered "quite wealthy" these days. $12 million is just comfortable when a new studio apartment can easily cos...
by bigred77
Fri Oct 20, 2017 1:50 pm
Forum: Personal Consumer Issues
Topic: Any BMW X5 owners?
Replies: 17
Views: 2389

Re: Any BMW X5 owners?

I have owned 2 BMWs (328i and X3) for the past 4-5 years out of warranty. They are 9 and 10 years old now, both with over 100k miles. I have had to do basic maintenance on both and a couple of reasonable repairs (oil/filter/brake fluid changes, new tires/batteries/lights, some repairs like new actua...
by bigred77
Wed Oct 11, 2017 8:33 am
Forum: Personal Consumer Issues
Topic: Greek Islands Cruise Excursions
Replies: 9
Views: 901

Re: Greek Islands Cruise Excursions

Athens is obviously full of historic sights but everything was pretty close together (which helps when you have limited time). You can probably see the Parthenon, Acropolis, Temple of Zeus, and tour the Acropolis museum all in one day (then find a place for a nice meal). They're all right next to ea...
by bigred77
Tue Oct 10, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Gears - Sanity Check
Replies: 19
Views: 1266

Re: Shifting Gears - Sanity Check

I would not put TIPS in a Roth. You want your funds with the highest growth potential there, such as US TSM/Int TSM. That's the only thing I see that I would call a glaring error. My concern is the tax implications. I have to plan my life and investments around the new reality of a fixed and very l...
by bigred77
Tue Oct 10, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Shifting Gears - Sanity Check
Replies: 19
Views: 1266

Re: Shifting Gears - Sanity Check

I would not put TIPS in a Roth. You want your funds with the highest growth potential there, such as US TSM/Int TSM. That's the only thing I see that I would call a glaring error. My concern is the tax implications. I have to plan my life and investments around the new reality of a fixed and very l...
by bigred77
Tue Oct 10, 2017 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Anesthesiologist Advise [how to save money]
Replies: 45
Views: 5734

Re: Anesthesiologist Advise [how to save money]

A debt free doctor in their early 30s who grosses 300k a year and has expenses between $40k and $66k a year is being told they shouldn't live in their current location for financial reasons... Wow :shock: :shock: OP, Just do some reading, Find out how your income works. Find out how taxes work. Find...
by bigred77
Fri Oct 06, 2017 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Where do you think the money will come from to move the overall market higher?
Replies: 31
Views: 2315

Re: Where do you think the money will come from to move the overall market higher?

...Profits from publicly traded companies continuing to rise over time... I don't know what the stock market is going to do. But I am skeptical of this kind of argument. Back around 1998 or so I remember a discussion with a colleague. My point of view was "Look, I understand that GE and all the oth...
by bigred77
Thu Oct 05, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio update/advice. Also: What do you do when you feel the urge to "buy something"?
Replies: 12
Views: 1234

Re: Portfolio update/advice. Also: What do you do when you feel the urge to "buy something"?

When you get the urge to buy something I would buy plane tickets and take an extra vacation.
by bigred77
Thu Oct 05, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Where do you think the money will come from to move the overall market higher?
Replies: 31
Views: 2315

Re: Where do you think the money will come from to move the overall market higher?

Profits from publicly traded companies continuing to rise over time.

I read something a long time ago about some sort of "invisible hand" :mrgreen: Seems to have some merit.
by bigred77
Thu Oct 05, 2017 12:08 pm
Forum: Personal Consumer Issues
Topic: How do you value your time?
Replies: 97
Views: 4118

Re: How do you value your time?

I've never tried to put a dollar value on my "time" but I absolutely spend more money for conveniences. Not every convenience, but many of them. I spent more on housing to not have a commute. I spend money to hire out chores (lawn and maid service are the 2 big ones). I will hire a handy man to hand...
by bigred77
Thu Oct 05, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Do you foresee a drop in housing prices in the next 5 years
Replies: 53
Views: 5506

Re: Do you foresee a drop in housing prices in the next 5 years

I expect housing prices to be local but in aggregate, at the national level, I expect slow and steady gains for the foreseeable future. The millennial generation is huge and more and more of them will eventually want to own property. I am in my mid-20's. Solidly a millennial. All of my peers who I ...
by bigred77
Wed Oct 04, 2017 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area Real Estate
Replies: 154
Views: 14741

Re: Bay Area Real Estate

Hardly a one industry town. There is plenty of Healthcare and SLED (State and Local Govt's and Education in the area). Have a look at top employers in various counties: Santa Clara http://www.labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000085 San Mateo http://www.labormarketinfo...
by bigred77
Wed Oct 04, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Pension Now (Age 36) or Later (Age 65)?
Replies: 45
Views: 3471

Re: Pension Now (Age 36) or Later (Age 65)?

If I were 36 with 29 years to get to 65, I would take the lump sum now and add it to my portfolio following my asset allocation plan because the promised return is equivalent to a 100% bond fund. I would also make a note on a 3 x 5 file card to check on my 65th birthday to see if I had made the rig...
by bigred77
Tue Oct 03, 2017 9:40 pm
Forum: Investing - Theory, News & General
Topic: Shooting for the moon as a young investor
Replies: 19
Views: 2075

Re: Shooting for the moon as a young investor

I don't subscribe to the OPs line of thinking (I think young professionals with money to invest in their 20s are far better served laying a foundation of sound financial practices and getting a head start on their nest egg using bogleheads principles) but if I did want to shoot for the moon, I'd muc...
by bigred77
Tue Oct 03, 2017 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2633

Re: Help with private investment opportunity

I'm really hoping this doesn't come off the wrong way but your post sounds like you "come from money" in that your have a couple of hundred thousand dollars at age 23 and connections with multi-millionaire entrepreneurs with a 60k income. If you do come from money then why not just roll the dice and...
by bigred77
Tue Oct 03, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Do you foresee a drop in housing prices in the next 5 years
Replies: 53
Views: 5506

Re: Do you foresee a drop in housing prices in the next 5 years

I expect housing prices to be local but in aggregate, at the national level, I expect slow and steady gains for the foreseeable future. The millennial generation is huge and more and more of them will eventually want to own property.
by bigred77
Tue Oct 03, 2017 4:42 pm
Forum: Personal Consumer Issues
Topic: Do I have to choose between buying home in HCOL and FIRE or can I have both?
Replies: 35
Views: 2640

Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

You are looking to buy a house 2X salary in 3 years. You don't have to worry. You can probably afford the $1.3M McMansion if that floats your boat without causing yourself any financial stress. Denver is pricey but you have it better than a number of other large cities in terms of housing prices.
by bigred77
Tue Oct 03, 2017 1:06 pm
Forum: Investing - Theory, News & General
Topic: Peter L. Bernstein: Cash BETTER than Bonds
Replies: 64
Views: 7523

Re: Peter L. Bernstein: Cash BETTER than Bonds

I know the quote in the OP was "bonds should trade places with cash" but what I get out of the sentiment is Bernstein does not think duration and credit risk is worth taking. He is advocating for duration of 1 day. You can buy some of his argument without going whole hog by just buying short term tr...
by bigred77
Tue Oct 03, 2017 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2246

Re: Pay off mortgage instead of bond investment

I would pay off the mortgage in your case. It's 4% of your investment portfolio and half of your cash. I would just pay it off to simplify your life rather than make it an investment analysis. Sounds like you have a good plan and if your wife has the ability to control the AA of the trust then it de...
by bigred77
Mon Oct 02, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: loosening the purse strings a bit at 37?
Replies: 30
Views: 3983

Re: loosening the purse strings a bit at 37?

OP How much tax advantaged space to you have available to you? Do you have a solo 401k where can sock away 50k+ plus 2 Roth IRA's (possibly backdoor) + HSA + 529s? If you could sock away 60k in the 401k and 2 Roth IRA's plus 17k in your 529s and HSA that would be a pretty great goal IMO. That's just...
by bigred77
Thu Sep 28, 2017 9:33 am
Forum: Investing - Theory, News & General
Topic: Why do you LBYM? Why do you save and invest?
Replies: 204
Views: 15173

Re: Why do you LBYM? Why do you save and invest?

Probably a combination of fear and opportunity. I was lucky enough to land a well paying entry level role in corporate america that started one week after graduation. That was in 2008 so I was quite fortunate. I had seen my parents struggle with money and make many, many bad financial decisions. It ...
by bigred77
Thu Sep 28, 2017 6:52 am
Forum: Personal Finance (Not Investing)
Topic: 27yo looking for advice on first house budget
Replies: 29
Views: 2555

Re: 27yo looking for advice on first house budget

No desire to rent. Why not? +1 27 and single is the time to either stay where you are and pile up money if you like your current living situation, or move to a nice 1 bedroom apt in the best location for you (either right by work or in the trendy bar/restaurant district; ideally both). No need for ...
by bigred77
Wed Sep 27, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: My boneheaded financial mistakes
Replies: 77
Views: 9799

Re: My boneheaded financial mistakes

I bought GM prior to the crash. When it went down I bought more because I thought it was 'too big to fail' and if GM failed, I'd have bigger things to worry about. That, at least, was true. Me too!! That was my catalyst to actually sell everything I owned and put a boglehead portfolio into practice...
by bigred77
Tue Sep 26, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: grad student - how much to contrib to IRA
Replies: 14
Views: 1091

Re: grad student - how much to contrib to IRA

I would encourage any grad student to contribute whatever they can (10% would be tremendous) and consider any dollar that actually makes it in there and is not spent at a bar to be a win :mrgreen:
by bigred77
Tue Sep 26, 2017 12:57 pm
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 142
Views: 12062

Re: Lifestyle Creep

I've probably let lifestyle creep happen too quickly within my own family. As we transition down to a one income family next year it might be a little bit challenging to back down a bit but I'm hoping being new parents will take up enough of our time that we will naturally spend a little less :mrgre...
by bigred77
Mon Sep 25, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying a home this expensive reasonable for our situation?
Replies: 16
Views: 2060

Re: Is buying a home this expensive reasonable for our situation?

You can without question afford it. You have a household income of 240k and want to buy a house equal to 1.83X household income. You have over 500k in tax advantaged accounts for retirement and college in your late 30s. You have enough current home equity to even put down 25%+ if you want. What does...
by bigred77
Mon Sep 25, 2017 1:39 pm
Forum: Personal Consumer Issues
Topic: Asking for no wedding gifts
Replies: 72
Views: 4526

Re: Asking for no wedding gifts

Anything but "cash gifts preferred"! Gill How about "no boxed gifts"? +1 As someone who is just getting out of "5+ weddings a year because all of my friends are now getting married" phase of life I can tell you that at least in my experience and social circle, "no boxed gifts please" written on the...
by bigred77
Thu Sep 21, 2017 9:06 pm
Forum: Personal Consumer Issues
Topic: Luxury Car Purchase
Replies: 47
Views: 3816

Re: Luxury Car Purchase

It's not completely unreasonable.

And if your financial advisor charges you the standard 1% per year you could fire him and buy a 130k dollar car every 4-5 years with the savings :shock:
by bigred77
Thu Sep 21, 2017 9:01 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 114
Views: 10847

Re: No More Saving???

I personally don't see myself ever stopping my savings plan until I retire. Then again I plan to retire as early as I reasonably can. I could see a situation where one had a pension and they had to continue working until they reached some eligibility requirement (age, number of years worked, etc). I...